Why The Trade Desk Inc. Stock Popped Today

By Steve Symington Markets Fool.com

What happened

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Shares of The Trade Desk Inc. (NASDAQ: TTD) were up 29.3% as of 12:30 p.m. EDT Friday after the digital advertising technology platform specialist announced strong first-quarter 2017 results.

So what

Quarterly revenue jumped 75.7% year over year to $53.4 million, thanks to a combination of high customer retention (over 95%) and solid omnichannel growth. On the bottom line, Trade Desk swung to GAAP net income of $4.9 million, or $0.11 per share, compared with a net loss of $1.0 million, or $4.45 per share, in the same year-ago period. On an adjusted (non-GAAP) basis, net income more than doubled to $7.8 million, or $0.18 per share.

Image source: Getty Images.

"We believe our great start in the first quarter points to a strong 2017 for our business," added Trade Desk CEO Jeff Green. "We won a lot of new brands through our agency partners from most of the major sectors of the economy -- for example, financial, auto manufacturers, food and restaurant and one of the major shoe companies."

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Now what

As such, and thanks to "strong" visibility for the rest of the year, Trade Desk now expects 2017 revenue of at least $291 million (up from previous guidance of $270 million), and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $78 million (up from $72 million before).

This was a clear beat-and-raise scenario. And even with shares up nearly 90% so far in 2017 as of this writing, I won't be surprised if Trade Desk stock continues to climb higher from here.

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Steve Symington has no position in any stocks mentioned. The Motley Fool recommends The Trade Desk. The Motley Fool has a disclosure policy.